Restructuring Expenses

3 Months Ended

Mar. 31, 2014

Restructuring And Related Activities [Abstract]

Restructuring Expenses

15. Restructuring Expenses

2014 Restructuring

On May 6, 2014, the Board of Directors approved a plan of restructuring intended to streamline and flatten the Company’s organization, reduce overall headcount by approximately 20% and reduce its overall cost structure by approximately $2.0 million per quarter. The restructuring includes an update to the assumptions used in the Company’s 2013 restructuring related to subleases of its facility consolidations and closures of $0.5 million. The total one-time restructuring charges of approximately $1.6 - $2.0 million will be recorded in the fiscal quarter ending June 30, 2014. Of these charges, approximately $1.2 – $1.4 million will be cash expenditures, and approximately $0.4 – $0.6 million will be non-cash stock compensation.

The restructuring plan is expected to be implemented primarily during the fiscal quarter ending June 30, 2014 and will result in a negative cash impact of approximately $0.7 - $0.9 million

The amounts stated above are preliminary and subject to change as we finalize our assessment of the charges and costs associated with the above items. These charges and cash expenditures do not take into consideration any potential cost savings associated with the plan of restructuring.

2013 Restructuring

In July 2013, the Board of Directors approved a plan of restructuring intended to bring the Company’s operating expenses better in line with revenues. The restructuring plan involved a realignment of organizational structures, facility consolidations/closures and headcount reductions of approximately 26% of the Company’s worldwide workforce. The restructuring plan has been implemented resulting in annualized savings of approximately $16.0 million.

The restructuring plan resulted in special charges totaling $5.6 million recorded during the three month period ended September 30, 2013. These charges were for lease/rental terminations of $3.3 million, severance costs for affected employees of $1.1 million, equipment and improvements write-offs as a result of our lease/rental terminations of $1.0 million and other related costs of $0.2 million. All are cash expenditures except for the equipment and improvements write-offs.

Those expenses to be paid within 12 months are included in the accrued liabilities line item on the balance sheet and total $1.4 million. $1.7 million of restructuring is included in the deferred rent and other long-term liabilities line item on the balance sheet. Following is the activity in our restructuring liability account for the period ended March 31, 2014 (in thousands).

	December 31, 2013								March 31, 2014
	Balance		Provision-net			Usage			Balance
One-time employee termination benefits	$	215	$	(194	)	$	(21	)	$	—
Lease/rental terminations		3,115		219			(229	)		3,105
Fixed asset write-offs, transition travel, other		38		(25	)		(5	)		8
Total	$	3,368	$	—		$	(255	)	$	3,113

2012 Restructuring

We undertook a restructuring in the fiscal year 2012. As of March 31, 2014, we still have a balance of $4,000 for this in our restructuring liability account which is included in the accrued liabilities line item on the balance sheet.